Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Morning all - just one question I cant find the answer to - the 2nd well in Block XX - why are all the presentations so silent about it?
Only "2nd well target being worked up." Remembering this has been like this for a t least 3 months.
Maybe a question for Mike next week.
Any thoughts anyone?
GLA - good to see the SP going in the right direction. UB high of 27deg.
Morning all!
"As previously announced, the Company has been running a farm-out process which has generated interest from a range of companies, who have undertaken reviews of the Company’s data room. There are currently a number of companies remaining in the process. The completion of this Placing will strengthen the Company’s financial position and thus negotiating position with potential farminees. As there are still a number of interested parties, the Company does not rule out bringing in a farminee, if on favourable terms, prior to the commencement of drilling in July 2018."
Whilst I agree that potential Companies are looking for sure things. The cost of backing into PM even in their improved position cant be that much when you look at the price of drilling offshore.
Look at it this way an Offshore well can run anything from US$30M upwards. The cost of six wells here is say US$33M. Two of those wells we know have a better than 50% chance of success. Surely this becomes a no brainer.
If Gazelle,(15MMBO) US$ 80M NPV add Red Deer (48MMBO) and US$256M NPV plus ......
So next question what do PM want from a farminee for the right to participate?
To me - costs to date, PSC costs, drilling costs 2018/2019 and exploration funding for 2020/2021 (3D/2D and drilling/testing costs) - that then gets PM clear and covered for all and any PSC costs. .
Let say costs to date run to $100m they want to recover, likely NPV of the two prospects mentioned is $336M.
I suspect they will get 30% of the Company and it will cost them $100M. But remembering that Petrovis wont want to loose control one answer maybe creation of two different shares classes - voting and non voting.
In any case just a few thoughts!
Best of luck all - Ham, D1inger, OJ, Maestro, Mr P, Loz, One rule, Paul, Manro, Bucc and many more!
I think maybe we have forgotten one major point.
Yes I agree that the BOD should take notice of what heir shareholders want. But as always there is a democracy of sorts here as the one who holds the most shares gets to decide what they (BOD) can/cant do. In this case it is Petrovis.
They, Petrovis, like us, poor retail shareholders, all want the same thing. If there is O&G to be able to negotiate the best deal possible to get the best return for their money/our money!.
I am afraid complaining because we dont like the way the BOD play is not going to get us anywhere.
So as D1nger said hang in there as I suspect he is right we are going to see some fireworks! Sadly I dont think by 4th July but in the not too distant future!
ATB everyone - the word is hold! (top up if you can)
GLA - thanks to JNDavid, One rule, OJ, Paul, D1nger, Manro, Maestro, MIkey, Mr P and many others.
Well Maybe it will happen!
"New Delhi, June 22 (IANS) Union Home Minister Rajnath Singh on Friday attended the ground breaking ceremony for an Indian-funded oil refinery in Mongolia and termed it an important milestone in bilateral ties between both the countries.
The ceremony at Stantsiin Hooloi in Altanshiree Soum was attended, among others, by Mongolian Prime Minister Ukhnaagin Khurelsukh.
“Both India and Mongolia should work in close coordination not only for progress and development of Asia but to usher peace and prosperity in the Indo-Pacific region,” said Rajnath Singh, who is on a 3-day visit to Mongolia, according to an official statement.
Recalling the statement made by Prime Minister Narendra Modi in 2015 during his visit to Mongolia, he expressed confidence that with the start of this refinery, Mongolia would derive rich benefits."
Morning all
Just reading the last few pages and heavens this is doom and gloom!
Oh well let me try and give a few positive thoughts!
Fund/SCh123 make me laugh , even though I know they have their heart in the right place they are always giving dire warnings. Yes they have been right in the past but I seriously believe if you are going to "invest" in the AIM market you have to accept that it is a hit and miss affair. It is not like buying shares in BP/Exxonmobil. But the rewards can be significant.
The last statement is the key to me. Lets face it we all want to make a few dollars. To quote a much used phrase "You have to be in to win! " - yes sometimes you get caught but if you do your own research and realize the risks to me it is worth the pain.
So to the circular.
A few comments I think are worth highlighting:
"As there are still a number of interested parties, the Company does not rule out bringing in a farminee, if on favourable terms, prior to the commencement of drilling in July 2018." - So maybe the delay is in relation to this and the fund raising. The fund raising in itself will help enhance the value of MATD and make the farm-in more attractive to the shareholders so perhaps not as much a crazy move as people seem to think!
"The Group has breached certain terms of its PSCs which give rise to a right for MRPAM to terminate the relevant PSC. There is an outstanding shortfall of approximately US$21 million on the agreed minimum work programme obligations in relation to Block XX. MRPAM has however agreed to carry this shortfall into the extended term of the Block XX PSC ending on 4 July 2020"
If you do the numbers they have stated in their June 4th RNS relating to the Final Accounts for 2017 that they have an obligation to spend US$ 28.646M on the PSCs and in addition they have fees of US$ 1.475M. - thi is within the next five years.
Based on what is happening this year and the RNS stating that of the above US$21M relates to block XX - then surely it makes sense to get funding to ensure this obligation can be met.
In any case a few thoughts . Great day here UB will be 21 to day.
GLA to all.
Morning all again! If you do the numbers with the new data from the circular and factor in the additional shares due to be in circulation you get the following: 2018 Wild Horse Snow Leopard Gazelle Plus One Total prospective resource mid case is now : 480 + 90 + 13 + 10? = 593mmbbl 2019 Fox Red Deer Total prospective resource mid case is now : 200 + 48 = 248mmbbl Grand total mid-case 841 mmbbl - This equates to around GBP 1.17/share - then factor in the new shares and this drops to 92P/share - Of note this is still 20P per share more than Stockdales estimate. I stress this is the mid-case also. Just an FYI. Good evening all. Manro/Mullins etc all - GLA
Rampark Many thanks - not sure why but I put in Circular as a key word search and got nothing other than the 15/06/18 RNS. Makes for some interesting reading and explains clearly where their going and why. Must admit am a lot calmer with the whole process now. Again thanks.
Question - does anyone know when the circular will be available?. RNS said shortly now nearly a week and still not available as far as I can tell. The interest is supposedly this will tell us why the new placing is being made.
Good morning all. Just a few thoughts: 1) Could this placing/fund raising to ensure cash is available to up the number of shares PM hold in the event of an attempted take over? Lets face it they need to be able to quickly take their holding to over 50%. Based on the new share numbers and a price of 10P per share that amounts to around GBP13.49M. 2) They may have an agreement with a white knight who has agreed to take up a large percentage of the new shares?In the event of an attempted take-over they are then safe. 3) Possibly as someone else alluded they may in fact have a potential Farm-in partner who has wanted to participate in the drills. In any case UB going for a high of 28deg today. Next week looks good in terms of weather. I suspect the rig is on site by now and so a spud date should be close. Also the rig contract for block XX could well be in place although the ink may not be on the paper yet! GLA - all the best - Maestro, Blad, D1nger, Ham, Manro, Bucc, Dusty - nice post!. OJ, Paul, Loz, Fund, Share and everyone. I think positive news in the not too distant future- would be nice to have some!
Second part Control and Rule 9 implications of the future Concert Party The Petrovis Group holds together 51.11 per cent. of the Petro Matad's enlarged issued share capital and therefore has majority control of the Company's voting rights. From 30 September 2013 and subject to consultation with the Panel and Note 4 to Rule 9.1 of the Code, which addresses acquisitions of interests in shares by members of a concert party, the Petrovis Group will be able to acquire additional shares in the Company without being obliged under Rule 9 of the Code to make a mandatory offer for all the of Company's outstanding shares it does not already own. "
This may help. (Morning all!) "On 15 May 2013 The Panel on Takeovers and Mergers (the "Panel") announced an amendment to the residency test in section 3(a) of the Introduction to the Code. This provision currently stipulates that the Code only applies to AIM companies if they have their registered office and are considered by the Panel to have their place of central management and control in the United Kingdom, the Channel Islands or the Isle of Man. Whilst Petro Matad's registered office is in the Isle of Man its place of central management and control is considered to be outside of these three jurisdictions on account that the majority of its directors are not residents of the UK, Channel Islands and the Isle of Man and therefore the Code does not currently apply to the Company. A removal of the residency test for AIM companies will come into effect on Monday 30 September 2013 from which date Petro Matad will become subject to the Code. "
Rampark Owe you an apology you are spot on. I had taken the numbers fro Sharehub which has got to have got the two Capital raised wrong. They talk about the post raise number when in fact it is the pre-raise number of 196M. So the revised figure as you correctly point out is 29.73% of the enlarged share capital. So the key to this fund raising may well be the circular.
Tend to agree with Bullant. I Think from memory the visa applications were approved by Government towards the end of April. (ie Minister approved them) They 82 visa applications in in relation to PM , so as I said at the time delay of around a month to get everything up and straight made sense. Last information I had heard was that there were 4 Sinopec people on site. As far as the BOD I think if you blame anyone you blame Petrovis, I dont think Mike had any real say init. The spin of was MB was funded for two more wells and maybe more but the real push was Petrovis getting worried that they were loosing control fo PM. Was the timing questionable? Maybe but as someone else commented GKP did the same thing, and as I reminded everyone this was the same move as happened in 2013,at that time it was 55.5M shares and a larger percentage overall; so arguably we should have known it was likely to come. If this means things are calmer going forward I fo one wont complain. I dont want Bergen type outfit to raise its head ever again!! All IMO - GLA. .
D1nger To back up what you were saying last night I notice that at least one of the Brokerage houses commented there.is an upside of greater than 450% to their risked NAV estimate.which was in excess of 70P per share.Even allowing for the dilution and the increase in the prospect to 490mmbbl you get a number of around GBP 6.12/share. If you take the base number without the upside you arrive at around GBP 1.22/share No too shabby. Well another great day here UB 19 Deg and high of 31deg on Wednesday. Take care all - and GLA hopefully a news day soon. D1nger keep drinking the wine your posts get better after the kids are in bed!! Paul safe sailing - Bucc, Mr P, OJ,Ham, Share, Manro, Maestro, Loz, and many others. Thanks for your posts. Have a great week!1
General thought. If you go back to early days in PM history the Management were defective in the way they went about the first drilling campaign. The drill sites were not chosen from the IPS or ISIS reports provided, there seems to have been a management style which was overbearing to say the least. eg The drill sites chosen ignored those proposed by ISIS in favour of the Operations lead. . At least the current management have the right experience and the good sense to make changes based on new details as and when they become available. (ie the change as a result of the new 2D and 3D. ) All in all a better Management style that shows the true value of Mike and the team. Unlike the early team which got it wrong, never tested what they drilled until it was too late and effectively wasted time and resources on 8 wells. IMO this time Management have got it right. Good weekend all.
Morning D1nger Agree totally we were for sometime fairly easy going and then we have had a few rather loud attack dogs that in the end dont really add anything to the board. TO follow on from your thoughts they (Petrovis) did the same thing in in July 2013. Then there was a subscription share issue of 90M shares of which Petrovis took 55.5M. I dont really see that this is anything more than more of the same . They are protecting their investment on two levels. 1) Worst case and nothing comes of the drilling this year - the Company would be vulnerable with a low SP. 2) Best case there is success this year (be it mild or major) and they (Petrovis) want to be in charge still in case of any hostile bids and or possible farm-in. So to me timing was I agree shxx but at the end of the day they are the owners in reality so given the same situation I would follow the same path. Morning all. UB still not bad with a high of 26deg today. Great weekend all! GLA everyone.